Financial Statements Help!
Cudey
Registered Posts: 138 Dedicated contributor 🦉
Hi all.
I'm preparing for my Statements exam on Thursday and am currently hitting my head on the wall with a Statements question on one of the mocks. It's the 2013 sample 1 paper question 1.6
I've got every figure right except the retained earnings figure.
There's 3 parts to the working.
First is the parents retained earnings which is 370.
Then you have the subsidiaries and the inter-company. This is where I think I'm going wrong. I've worked the provision for unrealized profit to be 4.
I got the figure to be 352 being, but the answer is 408?
Any help would be very much appreciated. Thanks all.
I'm preparing for my Statements exam on Thursday and am currently hitting my head on the wall with a Statements question on one of the mocks. It's the 2013 sample 1 paper question 1.6
I've got every figure right except the retained earnings figure.
There's 3 parts to the working.
First is the parents retained earnings which is 370.
Then you have the subsidiaries and the inter-company. This is where I think I'm going wrong. I've worked the provision for unrealized profit to be 4.
I got the figure to be 352 being, but the answer is 408?
Any help would be very much appreciated. Thanks all.
0
Comments
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just closed this as I have the exam tonight, let me have a quick look.0
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The retained earnings is calculated as:
Beacon Ltd - 370 - taken from SToFP
plus Hill Ltd attributable to Beacon Ltd - 42 - (retained earnings at end of period 250 - retained earnings at start of period 190 x 70% controlling share)
Less Inter co. adjustment - (4) - (this is the unrealised profit from the inter company sale, which had £20,000 profit but still hold 1/5 of the inventory)
= 408
hope this helps.0 -
Fantastic! Thanks for the quick response. I used 60 for the inter company instead of the 4. and got the percentage the wrong way round. Stupid mistake.
All the best for your exam tonight!0 -
No problem,
thanks and good luck for Thursday!0
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